2016 -- S 2040

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LC003153

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO HUMAN SERVICES - PUBLIC ASSISTANCE ACT

     

     Introduced By: Senators Walaska, Algiere, Ciccone, Cote, and McCaffrey

     Date Introduced: January 13, 2016

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 40-6 of the General Laws entitled "Public Assistance Act" is

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hereby amended by adding thereto the following section:

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     40-6-8.1. Prohibited uses of electronic benefit transfer cards. – (a) The department

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shall adopt rules prohibiting purchases with cash assistance funds held on electronic benefit

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transfer cards in venues as described in this section.

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     (b) The department is hereby empowered, and shall maintain policies and practices as

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necessary to prohibit cash assistance provided under this chapter from being used in any

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electronic benefit transfer transaction at:

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     (1) Liquor stores (holding solely a retailers class A license);

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     (2) Casinos or at facilities that conduct casino gaming as defined in chapter 61.2 of title

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42;

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     (3) Gambling facilities as defined by chapter 9 of title 41;

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     (4) Retail establishments which provide adult-oriented entertainment in which performers

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disrobe or perform in an unclothed state for entertainment as defined in the Social Security Act,

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42 U.S.C. 608(a);

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     (c) Eligible recipients of direct cash assistance who use cash assistance funds held on

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electronic benefit transfer cards in such establishments shall, for a first offense, have their cash

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assistance reduced for one month by the portion of the family's benefit attributable to one parent,

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in accordance with rules and regulations promulgated by the department; for a second offence,

 

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have their cash assistance reduced for three (3) months by the portion of the family's benefit

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attributable to one parent, in accordance with rules and regulations promulgated by the

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department; and for a third offense shall be disqualified from the direct cash assistance program

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for a period of one year.

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     (d) A store owner who commits fraud against the department of human services by

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violating §11-41-33 and who also possesses a license to sell alcoholic beverages under chapter 7

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of title 3 shall be referred to the appropriate licensing authority for possible disciplinary action

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pursuant to title 3.

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     (e) A store owner who commits fraud against the department of human services by

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violating §11-41-33, and who also possesses a license to sell lottery tickets under chapter 61 of

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title 42 shall be referred to the director of the state lottery for possible disciplinary action.

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     SECTION 2. Chapter 11-41 of the General Laws entitled "Theft, Embezzlement, False

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Pretenses, and Misappropriation" is hereby amended by adding thereto the following section:

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     11-41-34. Fraud against the department of human services. – (a) The following

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establishments and/or retail outlets are prohibited from accepting electronic benefit transfer cards

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issued by the department of human services:

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     (1) Liquor stores;

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     (2) Casinos or at facilities that conduct casino gaming as defined in chapter 61.2 of title

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42;

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     (3) Gambling facilities as defined by chapter 9 of title 41;

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     (4) Retail establishments which provide adult-oriented entertainment in which performers

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disrobe or perform in an unclothed state for entertainment as defined in the Social Security Act,

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42 U.S.C. 608(a);

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     (b) A store owner who knowingly allows a prohibited electronic benefit transaction in

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violation of this section shall be guilty of a misdemeanor and shall be punished by a fine of not

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more than five hundred dollars ($500) for a first offense, by a fine of not less than five hundred

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dollars ($500) nor more than two thousand five hundred dollars ($2,500) for a second offense,

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and for a third or subsequent offense shall be guilty of a felony and shall be punished by a fine of

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not less than two thousand five hundred dollars ($2,500).

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     (c) In addition to the penalties imposed by subsection (a) of this section, the department

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of human services is further authorized to suspend and/or revoke any license necessary to conduct

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business.

 

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HUMAN SERVICES - PUBLIC ASSISTANCE ACT

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     This act would prohibit a recipient of direct cash assistance on electronic benefit cards

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from utilizing that benefit card at liquor stores, casino gaming facilities, and various adult

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entertainment establishments, and would establish penalties for violations by recipients. This act

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would also prohibit store owners from accepting the benefit card for the purchase of the above

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items and provides for penalties for violations, and would create a new criminal offense deeming

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such offenses as "fraud against the department of human services."

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     This act would take effect upon passage.

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